British hedge fund trader confesses to tax fraud in Danish court By Reuters

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COPENHAGEN (Reuters) -A British hedge fund dealer on Thursday confessed in a Copenhagen courtroom to serving to defraud Danish tax authorities of round 8.4 billion Danish crowns ($1.22 billion) in a so-called “cum-ex” tax fraud scheme, broadcaster DR reported.

Anthony Mark Patterson confessed to having contributed to almost 3,000 trades that the prosecutor alleges had been fraudulent, and to tried fraud value round 500 million crowns, the broadcaster mentioned.

Patterson is charged with taking part in a scheme during which the Danish state misplaced greater than 9 billion crowns between 2012 and 2015.

The “cum-ex” schemes, which flourished after the 2008 international monetary disaster, concerned banks and buyers swiftly dealing shares round dividend payout days, blurring inventory possession and permitting a number of events to say tax rebates in a number of nations together with Germany and Belgium.

Prosecutor Marie Tullin instructed the courtroom that the fraud occurred by way of tax refunds to U.S. pension plans that weren’t eligible to pay dividend tax in Denmark.

She mentioned almost all the tax refunds ended up with Solo Capital Companions, a London-based hedge fund based by the principle suspect Sanjay Shah, and claimed that the defendants by no means truly owned the shares.

Patterson’s defence lawyer Henrik Stagetorn instructed the courtroom that his consumer had acquired 100 million crowns for his position within the buying and selling scheme, DR reported.

Stagetorn in mid-February mentioned Patterson had deliberate to admit. Patterson had initially denied wrongdoing.

Shah, whose hearings are on account of start on March 11, was additionally current on the courtroom on Thursday, Ritzau information company reported.

Shah was extradited to Denmark from Dubai in early December and continues to be held in detention. He denies wrongdoing.

($1 = 6.8727 Danish crowns)